MIS CH 12

virtualization

- A type of software that Allows a single computer or cluster of connected computers to function as if it were several different computers - Each computer runs its own operating system and software. - Can be used to reduce an organization's hardware needs. - Can create a firm's own private cloud of scalable assets. - Can cut energy consumption and lower carbon footprint. - Virtual desktops: Running an instance of a PC's software on another machine and delivering the image of what is executing to the remote device. - Allow firms to scale and upgrade systems far more easily than if they had to maintain each individual PC.

Apps and app stores

- Compared with packaged software, apps lower the cost of software distribution and maintenance. - Apps offer a richer user interface and integrate more tightly with a device's operating system. - Huge firms have leveraged smartphone apps as their only, or primary interface with consumers. - Critics say apps force consumers into smartphone walled gardens and raise consumer switching costs.

Marginal cost

- Cost of producing one more unit of a product - Is effectively zero to produce an additional copy of a software product.

BLACK SWANS

- Events that cannot be predicted but can cause an impact. - Scalable computing resources can help a firm deal with spiking impact from Black swan events.

Linux on a desktop

- Linux is common on mobiles, consumer electronics, and on enterprise solutions, but not on desktop computers: - It is not easy to install. - Its complexity can raise the total cost of ownership. - Total cost of ownership (TCO): All costs associated with the design, development, testing, implementation, documentation, training and maintenance of a software system.

Server farm

- Massive network of computer servers running software to coordinate their collective use - Provide the infrastructure backbone to SaaS, hardware cloud efforts, and many large-scale Internet services. - Require plenty of cheap land, low-cost power, ultrafast fiber-optic connections, and benefit from mild climates. - Google, Sun, Microsoft, IBM, and HP have all developed rapid-deployment server farm modules.

Cloud providers

- Platform as a service (PaaS): Cloud providers offer services for customers to build their own applications on the provider's infrastructure. Services include hardware, operating system, tools, and hosting. - Infrastructure as a service (IaaS): Cloud providers offer services that include running the remote hardware, storage, and networking. Client firms can choose the software used.

Clouds and Tech Industry Impact

- Shifting to cloud computing modifies the margin structure for many in the computing industry. - Cloud computing can accelerate innovation. - Changes the desired skills mix and job outlook for IS workers. - Enables organizations to spend less on hardware infrastructure and reinvest in strategic efforts and innovation. - Firms need to think about the strategic advantages that can be created.

CLOUDBURSTING

- Use of cloud computing to provide excess capacity during periods of spiking demand. - It is a scalability solution that is provided as an overflow service, kicking in as needed

Business of Open Source

- Vendors make money on OSS by selling support and consulting services. - Industry's evolution (standards competition): - Pre-Linux days: Almost every major hardware manufacturer made its own incompatible version of the Unix operating system. - As such, they had difficulty attracting third-party vendors to write application software. - Now all major hardware firms run Linux, resulting in a large, unified market attracting software developers.

_____ refers to replacing computing resources, which could include hardware or software, with services provided over the Internet.

Cloud computing

_____ is a scalability solution that is usually provided as an overflow service, kicking in as needed.

Cloudbursting

Why open source?

Cost Reliability Security Security focused: Technology products that contain particularly strong security features. Scalability: Ability to either handle increasing workloads or to be easily expanded to manage workload increases. Agility and time to market.

Risks Associated with SaaS

Dependence on a single vendor. Concern about the long-term viability of partner firms. Users may be forced to migrate to new versions. Possibly incurring unforeseen training costs and shifts in operating procedures. Reliance on a network connection, which may be slower, less stable, and less secure. Data assets stored off-site may lead to security and legal concerns. Limited configuration, customization, and system integration options compared to packaged software or alternatives developed in-house. User interface of Web-based software is less sophisticated and lacks the richness of most desktop alternatives. Ease of adoption may lead to pockets of unauthorized IT being used throughout a firm.

Cloud services

Examples of hardware cloud services: Salesforce.com offers Force.com. Includes several cloud-supporting tools to write applications specifically tailored for Web-based delivery. Google's App Engine offers developers several tools. Including a database product called Big Table. Microsoft offers Windows Azure.

App platforms lower the switching costs of software developers when compared to costs associated with developing browser-based alternatives.

False

In contrast to other major platforms, there has never been a major open source software security vulnerability.

False

Most firms will opt for an IT configuration that is 100 percent in-house, packaged, or SaaS

False

The high customer costs of cloud computing raise the barriers to entry for startup technology firms seeking cloud services.

False

Software as a service (SaaS):

Firm subscribes to a third-party software and receives a service that is delivered online.

Cloud offerings

Hardware and software exists "in the cloud," meaning somewhere on the Internet. You only pay for the amount of processing, storage, and telecommunications used. Cloud vendors typically host your software on their systems. Cloud computing efforts focus on providing a virtual replacement for a subset of operational hardware like storage and backup solutions. SaaS provides the software and hardware to replace an internal information system. A firm replaces software and hardware with a service provided by a third party online.

Cloud computing challenges

Installing a complex set of systems on someone else's hardware is very difficult. Firms considering cloud computing need to do a thorough financial analysis. Firms should enter the cloud cautiously, particularly where mission-critical systems are concerned.

Which of the following is considered to be the flagship open source software product?

Linux

Open Source Software

Linux: Open source software operating system. Source code for OSS products is openly shared. Can be changed and redistributed by anyone. In stark contrast to the practice of conventional software firms who: Treat their intellectual property as closely guarded secrets. Almost never provide the source code for their commercial products. Seen by some firms as a threat that undermines their economic model. LAMP: Acronym for Linux, Apache Web server software, MySQL database, and Perl/Python/PHP. Powers many of the sites visited each day, from Facebook to YouTube.

Benefits of saas to users

Lower costs and financial risk mitigation. Faster deployment times and variable operating expense. Scalable systems. Higher quality and service levels. Remote access and availability. Limits development to a single platform. Tighter feedback loop. Ability to instantly deploy bug fixes and product enhancements. Lower distribution costs. Greater accessibility. Reducing software piracy.

Oss and the IT market

Lowers the cost of computing and makes computing options accessible to smaller firms. Reliable, secure, and lowers computing costs for all users. Diverts funds that can be used for other competitive initiatives and encouraging innovation.

Earning Money Through SaaS

Money can be earned via a usage-based pricing model similar to a monthly subscription. Other SaaS firms: Offer free services that are supported by advertising. Promote the sale of upgraded or premium versions for additional fees. Compete directly with the biggest names in software.

Which of the following is not considered advantages of apps over packaged software and browser-based alternatives.

Most app stores provide localization efforts, translating content uploaded by developers into language systems offered in local app stores throughout the world.

Which of the following is an open source software solution for the Unix operating system?

OpenSolaris

_____ are pools of computing resources that are owned-by and reside inside a given organization and that can be served up for specific tasks as need arrives.

Private clouds

Which of the following is usually not an option for firms relying on unique processes, procedures, or technologies that create vital, differentiating competitive advantage?

Purchasing package software from a vendor to automate such efforts

Which of the following observations regarding software as a service is true?

Radical changes in a SaaS system's functionality might result in unforeseen training costs

Cloud computing

Replacing computing with services provided over the Internet.

_____ is the ability to either handle increasing workloads or to be easily expanded to manage workload increases.

Scalability

_____ are massive networks of computer servers running software to coordinate their collective use.

Server farms

Which of the following is a customer relationship management software?

Siebel

_____ is a form of cloud computing where a firm subscribes to a third-party software-replacing service that is delivered online.

Software as a service

Open source software (OSS)

Software that is free and where anyone can look at and potentially modify the code.

Virtualization

Technology that can make a single computer behave like many separate computers.

Helps consolidate computing resources and creates additional savings and efficiencies.

True

Network effects and switching cost can offer a degree of customer preference and lock in.

True

Which software allows a single computer to function as if it were several different computers?

Virtualization software

iBeacon is:

a technology that apps can use to determine a user's location

With open source software, anyone can look at the source code, change it, and even redistribute it, provided the modified software:

continues to remain open and free.

Oracle, a firm that sells commercial ERP and database products, provides Linux for free, selling high-margin Linux support contracts for as much as five-hundred-thousand dollars. This is an example of

firms using OSS to wean customers away from competitors

A cloud computing model in which a service provider makes computing resources, such as hardware and storage, along with infrastructure management that is available to a customer on an as-needed basis is known as:

hardware clouds

Which of the following is true about SaaS?

its associated costs are treated as variable operating expenses rather than fixed capital expenses.

The ____ between the customer and the vendor usually specify the levels of availability, serviceability, performance, operation, or other commitment requirements.

service level agreements

In the context of open source software, the term "hardened" is used to describe:

technology products with particularly strong security features.

The largest concerns regarding software as a service involve:

the high dependence a firm develops with its SaaS vendor.

When a firm runs an instance of a PC's software on another machine and simply delivers the image of what's executing to the remote device, it is said to be operating on a(n) _____.

virtual desktop

A server running _____ software can create smaller compartments in memory that each behave as a separate computer with its own operating system and resources.

virtualization